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Bosnia-Herzegovina faces major socioeconomic challenges in the aftermath of devastating floods and months of violent protests. The upcoming general elections in October are unlikely to improve the situation, but increased IMF support should alleviate possible financial problems.

Bosnia’s economy is recovering slightly with the help of IMF support and real GDP growth is expected to be positive again in 2013. However, Croatia’s EU accession and the lack of structural reforms negatively affect Bosnia’s economic outlook.

Bosnia and Herzegovina's economic performance remains very weak amid a challenging external environment, while the country's intricate ethnically-based administrative structures prevent a major improvement of the poor business climate.

After the devastating war in the early ‘90s, Bosnia and Herzegovina (BH) has managed to get itself back on track economically, although many problems remain. Structural unemployment, a big current account deficit, a lack of well-enforced property rights and an bureaucratic and complex fiscal system are just a few of the problems that need solving.